The pension system of Ukraine should be built on the British model.

The advantage of this system is the simplicity and clarity

In the current economic climate we need to reform the national pension system on the British model.

This was stated by the economist Boris Kushniruk.

“Modernization of pensions, which are going to introduce in October, essentially nothing will change,” says the economist.

In his opinion, Ukraine needs a multi-stage pension system. Each step in it is a different tools of accumulation for old age. You may want to reduce contributions to the Pension Fund.

“It is in his time did Margaret Thatcher in the UK. She suggested that contributions to the solidarity pension system represented only 10 per cent of salary. Not 22 percent as we have now, but only 10. In this case, where 10% is assumed with the whole salary, because it is not a tax on income, and with 2-3 times the average salary in the country. What do you mean? If in Ukraine the average salary in 6 thousand, on a salary of 18,000 will be accepted contributions. And above all that 18 000 – the brothers will not. Thus, it would not make sense to hide these salaries are in the shadow, ” – said Kushniruk.

The advantage of this system is the simplicity and understandability. Under these conditions, the liability for future retirement lay in the people themselves. They take only 10% of contributions, and the rest of the citizens should provide for themselves, he said.

“There to receive the minimum old-age pension, need to contribute for 40 or 42 years. If you want more should take care of themselves, saving money, ” says the economist.

Now trying to impose – a mandatory funded contributions. Boris Kushniruk against. Says: there is no guarantee that these funds will be returned to you. They just can steal. As an alternative offers personal voluntary contributions.

“You can and should accumulate money, but they have to be personally yours. How and where you save money – your choice. This can be a pension Fund, company life insurance, special Bank account, or any assets, real estate. Latest – gives people the confidence that the pending money will not disappear “, – said the expert.

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